The IRS and Treasury recently released final regulations under Section 45V, focusing on the qualified clean hydrogen production credit. These regulations, applicable for tax years starting after December 26, 2023, aim to offer guidance on Section 45V, which stemmed from the Inflation Reduction Act of 2022. While largely adopting the proposed regulations with some modifications, the final regulations introduce favorable adjustments that can potentially increase the pool of eligible taxpayers for the credit. The notable changes in these regulations involve more extensive guidelines for assessing greenhouse gas emissions, particularly with regard to carbon capture, sequestration, and methane utilization. Taxpayers are encouraged to assess how these changes could affect their eligibility for the credit and the rates applicable to them. It is suggested that taxpayers review and adjust their tax credit models and projections to align with the updated regulations. Furthermore, the regulations also address the verification processes for the tax credit under Section 45V and its coordination with Section 48. For more detailed insights on the proposed regulations, individuals can refer to PwC Insights. Overall, these final regulations provide clarity and opportunities for taxpayers in the clean energy sector to leverage tax credits for qualified clean hydrogen production.